U.S. Proposes 1:1 Domestic Chip Production Rule

According to recent reports, the U.S. government is weighing a new policy aimed at sharply reducing reliance on overseas semiconductor production and boosting domestic manufacturing. The proposal would require chipmakers to keep a 1:1 balance—meaning the number of chips produced in the U.S. must match the volume their customers import from abroad.

Insiders revealed that companies failing to maintain this ratio over time could face tariffs. While former President Trump suggested tech firms investing more in the U.S. could avoid tariffs close to 100%, the new policy goes further, demanding not just investment but equalized output—something much harder to achieve given lower overseas costs and the time needed to ramp up U.S. production.

Under the plan, a company pledging to manufacture one million chips in the U.S. would be granted the ability to import the same amount tariff-free, even before new factories are completed. A grace period is expected at the start to help businesses adjust and gradually expand their American capacity.

Analysts note that this could pose challenges for giants like Apple, which rely on chips from multiple global sources. Firms may need to track chip origins more closely and work with manufacturers to balance U.S. and overseas volumes.

Markets reacted strongly to the news: GlobalFoundries (GFS) surged over 8% and Intel (INTC) climbed more than 4% by Friday's close. Experts believe the policy could strengthen Washington's recent investment in Intel, potentially revitalizing its foundry business.

The push comes as AI drives chip demand and geopolitical risks spotlight supply chain security. Nvidia (NVDA) still depends heavily on TSMC's advanced processes, underlining gaps in U.S. manufacturing. Meanwhile, Intel has already secured $5 billion in funding through partnerships with Nvidia and is reportedly exploring further investment from Apple and collaboration with TSMC.